A Comparative Study of Financing Structure of China Mainland and Taiwan Based on the Life Cycle of High-tech Enterprises

High-tech enterprises not only bear such characteristics as high investment and high risk, but also require a long growth cycle which is clearly divided into several stages. These characteristics have great influence upon the enterprise＇s financing structure. Therefore, exploration of the financing structure at different stages of high-tech enterprise life cycle and study of the structure diversity under different financing environment are undoubtedly significant to the establishment of reasonable financing structure and financing strategy. Taking high-tech enterprises of China Mainland and Taiwan as study subject and adopting the methods of comparative study and positive analysis, this paper divides the enterprise life cycle into three stages by using relevant financial indexes. On the basis of the financing structure indexes, the paper makes a comparative analysis of the financing structure at enterprise＇s different stages of both banks of straits, and analyzes the causes of the differences. The findings of the analysis shed new light on improving the financing structure of Chinese high-tech enterprises.

A Comparative Study of Financing Structure of China Mainland and Taiwan Based on the Life Cycle of High-tech Enterprises